It this a good deal? Should I do it?

[Peter K.]

So I'm under contract for a SFR (that is 1/2 of a duplex essentially) but listed as SFR- just sharing one wall and backyard fence. I'm currently still on the due diligence period - completed my home inspection last week- I have one more week of due diligence period until I'm locked in to purchase this home. I'm having second thoughts looking at my math and what-not but I wanted to hear everyone's opinion since this is my first property.

Property details= 2 BR/2 BA, Flat, Laminate floor, One car garage, decent sized backyard, next to Hospital and Great medical district of a University

Listing price was 74K

On market for 6 months

Agreed purchase Price 65K

Down payment is (20%)= 13K

Bank finance 52K @ 4.5% Interest

Anticipated Rent is $675-750 per month

So after the inspection, for it to be move-in ready I'm looking at about $1K repairs and possibly $500 to renovate/update.

So based on the math: 1) It doesn't meet the 2% rule (would be $1300 rent, not even close) 2) But meets the 50% rule (337 - 267= $70)

In addition, my net cash flow (deducting CapEx, repairs, PM, etc) is looking like $70+/month) so it isn't like $100-200 like what most people would want.

Since it is a duplex and if the other unit isn't properly maintained, my risk is that I have no control over it since I don't own that property and I can't not care since it is attached to my property and it can affect it.

Based on the math and the situation, should I go forth?

[Ian Walsh]

In the nicest way possible - If you have to ask that question, you need to learn more about your market and your goals.